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olya-2409 [2.1K]
2 years ago
8

You are looking to invest in one of three stocks. All other things being equal, Stock A has high expected earnings growth, stock

B has only modest expected earnings growth, and stock C is expected to generate poor earnings growth. According to LaPorta's 1996 study, which stock is likely to generate the greatest alpha for you?
Business
1 answer:
WINSTONCH [101]2 years ago
7 0

Answer:

Stock C is correct answer

Explanation:

According to the investigation of LaPorta's 1996 study Stock expected to have poor earnings growth has the greatest alpha.  Unlike, the option stock A and option stock B with modest and higher earnings growth.

Corrct Answer: Stock C.

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